SACRAMENTO -- The strong response by federal regulators to complaints of market manipulation by JPMorgan Chase & Co. should deter other sellers from doing the same thing, said officials at California's electricity grid operator. The Federal Energy Regulatory Commission announced on Tuesday that JPMorgan would pay $410 million in penalties to settle allegations it manipulated energy markets in California and the Midwest. Nancy Saracino, general counsel for the California Independent System Operator, said, “Both the ISO and the FERC were on the beat for this conduct, and it worked extremely well for California ratepayers.

NEW YORK -- JPMorgan Chase & Co. has agreed to pay $410 million to settle allegations it manipulated energy markets in California and the Midwest. The Federal Energy Regulatory Commission, which announced the settlement early Tuesday, said the sum included $285 million in civil penalties JPMorgan would pay to the U.S. Treasury. Nearly all of the remainder -- $124 million in unjust profits -- would go toward ratepayers in California's grid operator, the California Independent System Operator, FERC said.

If you take our federal and state energy authorities at their word, you just might be convinced that the $410-million penalty dropped Tuesday on JPMorgan Chase for manipulating energy markets in California and the Midwest is a big deal. "A historic fine," declared Commissioner Tony Clark of the Federal Energy Regulatory Commission, which reached the settlement with Morgan. He said it "sends a strong signal. " Over at the California Independent System Operator, the quasi-state agency that was directly victimized by JPMorgan's behavior, the penalty was hailed as "a success story for market monitoring and market oversight," as ISO general counsel Nancy Saracino stated on a conference call with the news media.

So much for the new, "tougher" Federal Energy Regulatory Commission. FERC, as the agency is known, is in the process of negotiating a settlement with JPMorgan Chase & Co., the huge New York bank that has been accused of serial frauds against California electricity customers and the state's electric distribution system. The reported size of the settlement price could be as high as $500 million, which would be a record penalty in a FERC proceeding. That certainly sounds like a big number.

NEW YORK -- JPMorgan Chase & Co. has been in settlement talks with the Federal Energy Regulatory Commission over allegations that the nation's biggest bank manipulated California's energy market, according to a source familiar with the matter. The New York-based bank has been in negotiations during the last few weeks, and the settlement figure could be around $500 million, said this person, who was not authorized to discuss the matter publicly. The commission has taken an increasingly aggressive stance in cracking down on manipulation of the nation's energy markets.

Wells Fargo & Co. booked a record $5.5 billion in profit during the second quarter despite a dramatic rise in mortgage rates and signs of a slowdown in its refinancing business. The 19% year-over-year jump in earnings for the nation's largest home lender reflected the breakneck pace with which the U.S. housing industry has evolved. Although refinancing activity slowed as interest rates jumped, Wells Fargo still was able to grow its mortgage origination business by increasing the number of loans it made to home shoppers.

Bank of America Corp. and JPMorgan Chase & Co. say they have satisfied their obligations to help troubled borrowers under last year's landmark mortgage settlement with state and federal officials. Another bank that signed the settlement, Wells Fargo & Co. said it is "90% of the way" to meeting its obligations, while Citigroup Inc. said it "remains committed to fulfilling the terms" while declining to characterize its progress. The self-reported information will not be credited officially until Joseph J. Smith Jr., the national monitor for the settlement, reviews the data.

NEW YORK - Jamie Dimon survived a bruising fight to strip him of his chairmanship, but directors at JPMorgan Chase & Co. may still have to calm restive shareholders. Dimon, JPMorgan's savvy chairman and chief executive, easily beat a proposal to split the roles following a stunning trading loss a year ago. The nation's biggest bank reported Tuesday that 32% of shareholders endorsed the measure, according to a preliminary tally. That's a sharp drop from the 40% who supported stripping Dimon of his chairmanship last year.